Countless businesses wish to enter contracting associations with the federal government. To ensure only the best contractors get the job, the Defense Contract Audit Agency (DCAA) takes a lot of steps. A key aspect of the DCAA’s job is ensuring all contractors meet government regulations and compliance requirements. The federal agency audits thousands of aspiring contractors every year. It acts as the “overseer of taxpayer dollars.” Their job is to ensure the US military receives all goods and services from contractors at fair prices. Their services save the federal reserve billions every year. Hence, achieving compliance as per DCAA standards isn’t easy.
How to Achieve Compliance?
To pass a DCAA Audit, contractors must comply with all government regulations and ensure
they’ll always operate under the law. Contractors must also anticipate
financial audits from the DCAA and ensure their business systems are
DCAA-compliant. Their accounting systems and timekeeping records need to be
perfect. The contractors must also keep all financial records audit-ready at
all times.
Are the Audits Difficult?
Contractors must
remember that achieving DCAA compliance doesn’t mean they land
the government contract. Attaining compliance is just a step in the process of
securing a federal contract. Since DCAA audits look carefully at all types of
costs (direct, indirect, allowable, unallowable costs, etc.), many contractors
feel confusion. Landing government contractors is extremely financially
rewarding. However, meeting requirements can be equally challenging. That’s why
partnering with DCAA compliance consultants can make audits super-simple. These
consultants have expertise in important regulations and can help contractors
set compliant systems.
